Deck 9: Decision Making,creativity and Ethics

Question 1

Ysanne uses intuition to make many of her decisions.Intuitive decisions are usually

A)based on experience.
B)"good enough."
C)irrational.
D)ineffective.
E)optimizing.

Answer 1

A

Question 2

A potential customer has indicated that he is willing to buy a substantial amount of your product,albeit at a lower price than is typically charged to existing customers.This potential customer has further indicated that,if she is satisfied with the quality of the product,more orders would follow in the future.Your company now has to consider whether this unexpected order should be accepted.This situation represents a(n)

A)dilemma.
B)problem.
C)opportunity.
D)commitment.
E)catalyst.

Answer 2

C

Question 3

Studies show that intuitive decisions are best applied when

A)time is plentiful.
B)policies,rules,and guidelines give clear-cut advice.
C)there is a great deal of uncertainty.
D)detailed numerical analysis does not need checks and balances.
E)the decision maker is inexperienced.

Answer 3

C

Question 4

Kyle is known to be someone who finds it difficult to admit his mistakes.He typically seeks out information that supports his decisions and ignores any information that contradicts them,even if that information is more plentiful.Kyle is exhibiting

A)anchoring bias.
B)confirmation bias.
C)availability bias.
D)overconfidence bias.
E)escalation of commitment.

Question 5

Bounded rationality involves identifying and evaluating a(n)________ number of alternatives and choosing ________ alternative.

A)limited;the perfect
B)limited;a satisfactory
C)unlimited;the perfect
D)unlimited;the first
E)limited;the first

Question 6

According to the rational decision-making model,factors affecting the decision and their importance are identified and considered when

A)identifying decision criteria.
B)developing alternatives.
C)evaluating alternatives.
D)defining the problem.
E)selecting the best alternative.

Question 7

If you calculate your monthly expenses and find that you are spending $50 more than your monthly earnings,you have engaged in which step of the rational decision-making model?

A)identifying decision criteria
B)developing alternatives
C)evaluating alternatives
D)defining the problem
E)selecting the best alternative

Question 8

Allocating weights to the decision criteria is unnecessary if

A)all criteria are relevant.
B)all criteria are equally important.
C)there are only two decision criteria.
D)the decision is being made by an individual.
E)a team is making the decision.

Question 9

Decisions made using the rational decision-making model can be described as

A)value maximizing.
B)inconsistent.
C)being based on the most easily available information.
D)most important.
E)minimum acceptable.

Question 10

The assumptions underlying the rational decision-making model include

A)unknown options.
B)unclear preferences.
C)time constraints.
D)cost constraints.
E)maximum payoff.

Question 11

When Sophie makes decisions,she does so with incomplete information.Sophie is making

A)irrational decisions.
B)rational decisions.
C)sharp decisions.
D)intuitive decisions.
E)bounded rationality decisions.

Question 12

Decision making that is fast and affectively charged is

A)using the rational methods.
B)using judgment shortcuts.
C)escalating commitment.
D)relying on intuition.
E)using risk aversion.

Question 13

What is the first step in the rational decision-making process?

A)establishing and evaluating alternatives to solve the problem
B)defining the problem
C)seeking out the reasons for the problem
D)determining the criteria that will be used to make the decision
E)doing the research necessary in order to define the problem

Question 14

Tina recently interviewed Don for a new position,and she was so impressed with Don that she was ready to hire him without interviewing additional candidates.However,Tina did interview other candidates,and the last person she interviewed was Mike,who clearly was the best candidate.Nevertheless,Tina hired Don.Tina has exhibited

A)anchoring bias.
B)overconfidence bias.
C)confirmation bias.
D)availability bias.
E)escalation of commitment.

Question 15

The catalyst for initiating the decision-making process is

A)a problem.
B)a solution.
C)rationalization.
D)a concept.
E)a change agent.

Question 16

Many of the decisions made in the "real world" don't seem to follow a logical or rational process,and thus are ________ decisions.

A)optimal
B)judgment
C)alternative
D)satisficing
E)creative

Question 17

Alison is trying to make a career choice,and she is having difficulty because there are so many possible choices available to her: "I feel like my head is going to explode because there are so many options,yet my ability to process them all in my mind seems limited." Alison is exhibiting

A)bounded rationality.
B)selective perception.
C)groupthink.
D)groupshift.
E)social responsibility.

Question 18

Decision making would be best described as an exercise in

A)establishing criteria and strategies to advance our goals.
B)evaluating and analyzing options.
C)making choices between two or more options.
D)making opportunities work.
E)focusing on advancement and progression through opportunities.

Question 19

Fred had a tight work deadline.Although the project was time-consuming with a lot of unexpected "twists and turns," he felt sure he would have his project completed by the deadline.As it turned out,he was three days late.Fred has exhibited

A)anchoring bias.
B)overconfidence bias.
C)confirmation bias.
D)availability bias.
E)escalation of commitment.

Question 20

Hiring the ________ person to do the job is an example of a(n)________ decision,while hiring a ________ person to do the job is an example of a(n)________ decision.

A)best-qualified;satisficing;the perfect;optimal
B)best-qualified;optimal;competent;satisficing
C)best-qualified;good;competent;perfect
D)perfect;satisfactory;best-qualified;good
E)best-qualified;good;competent;limited

Question 21

When group members exaggerate the initial positions that they held concerning an issue,the group has experienced

A)an anchoring bias.
B)groupthink.
C)group interaction.
D)groupshift.
E)group rationalization.

Question 22

Francine was at an auction,and,like many other bidders,she wanted to successfully bid on an antique lamp.She managed to outbid 10 other bidders,but she ended up paying $5000 more than it was worth.Francine has exhibited

A)overconfidence bias.
B)hindsight bias.
C)randomness error.
D)escalation of commitment.
E)risk aversion.

Question 23

Emery's team must make a decision quickly in the next few days about which marketing strategy to use in order to launch a new product.He has noticed that when the team has been together making decisions in the past,the team members favour more risky approaches than they do as individuals.Emery thinks that ________ is taking place when the team makes decisions.

A)intuition
B)groupshift
C)brainstorming
D)groupthink
E)availability bias

Question 24

The evidence indicates that,on average,groups make

A)less expensive decisions than individuals because of the optimal choices made.
B)more expensive decisions than individuals because of the lengthy time needed to make the decisions.
C)less creative solutions than individuals because of time restrictions.
D)faster decisions than individuals because of the division of labour.
E)better quality decisions than individuals.

Question 25

SCENARIO 9-1
Your organization is considering the use of teams for decision making.You have read and studied the topic extensively.Now you are trying to inform your manager about the advantages and disadvantages of group decision-making.


-Referring to SCENARIO 9-1,you should expect a weakness of group decision-making to

A)be less complete knowledge and information.
B)be that group decisions are more time-consuming than individual decisions.
C)be less acceptance of decisions because employees did not personally make the choice.
D)result in decisions of lower quality because of shared responsibility.
E)be less diverse in views and opinions.

Question 26

Groupshift most often means decisions

A)are made by groups rather than individuals.
B)are more risky.
C)are made more quickly.
D)prove less effective.
E)are more conservative.

Question 27

One of the symptoms of groupthink is

A)illusion of creativity.
B)illusion of conformity.
C)assumption of immorality.
D)illusion of unanimity.
E)irrational reason for decisions.

Question 28

Andre is very ambitious about his future in the company.He currently has a fairly high level of power as a director of a division.Recently there is a noticeable tendency for his decision making to be more

A)intuitive.
B)risk averse.
C)participative.
D)overconfident.
E)random.

Question 29

Sharon is really upset about her performance evaluation.Ellen,her boss,chastised her for a recent error that she made and failed to acknowledge many of Sharon's successes,the majority of which occurred three to six months ago.Ellen has exhibited

A)anchoring bias.
B)confirmation bias.
C)availability bias.
D)overconfidence bias.
E)escalation of commitment.

Question 30

Groupthink would most likely happen in

A)heterogeneous groups.
B)groups where debate is encouraged.
C)groups where cohesion is paramount.
D)groups where members participate actively.
E)groups made up of members who think "outside the box."

Question 31

Ahmad was upset.The new product line that he introduced last year has been a total failure.At the time that he had made the decision to go ahead with it,the economy was strong.However,shortly after the line was launched,the economy weakened sharply,and this contributed to its failure.He felt that he should have seen the downturn in the economy coming,and,thus,he should not have launched the new product line.Ahmad is experiencing

A)overconfidence bias.
B)hindsight bias.
C)randomness error.
D)winner's curse.
E)confirmation bias.

Question 32

Dante recently started his career and was concerned that he had already made some decisions with a biased frame of mind.In order to reduce the chances that this will happen in the future,when faced with new decisions,he plans to

A)generate fewer alternatives.
B)create meaning out of random events.
C)look for information that confirms his beliefs.
D)be more confident in his decision making.
E)generate more alternatives.

Question 33

Your director stresses the value of making a decision on initial information.She insists that what is initially considered in the decision-making process should be weighed as most important throughout the implementation of the decision.She has instructed you to ignore any subsequent information that you find since the decision was made.This is an example of

A)risk aversion.
B)an overconfidence bias.
C)escalation of commitment.
D)the anchoring bias.
E)making an optimal decision.

Question 34

Irena is faced with a problem whose solution requires a high degree of creativity.What is the best approach to solving this problem?

A)Solve it herself.
B)Let her most trusted employee solve it.
C)Ask a group of employees to solve it.
D)Outsource the problem to a consultant.
E)Ask her boss what to do.

Question 35

You are a supervisor at the nearby manufacturing plant.You have been trying to explain to your employees some of the ways that group decisions can be made.You tell them that when a group is developing alternative courses of action to solve a problem,some decision-making techniques generate more alternatives than others.The decision-making technique that will likely generate the most alternatives is

A)face-to-face interacting groups.
B)brainstorming.
C)the Delphi technique.
D)the nominal group technique.
E)electronic meetings.

Question 36

SCENARIO 9-1
Your organization is considering the use of teams for decision making.You have read and studied the topic extensively.Now you are trying to inform your manager about the advantages and disadvantages of group decision-making.


-Referring to SCENARIO 9-1,you have observed that the group tends to arrive at consensus very quickly and you know that the group is very cohesive.You conclude that they may be experiencing

A)partiality in decision making.
B)groupshift.
C)the nominal group technique.
D)groupthink.
E)the anchoring bias.

Question 37

Wherever possible,groupthink should be avoided because it results in

A)conflict within the group.
B)more risky decisions.
C)an anchored bias.
D)reduced effectiveness.
E)representative heuristics.

Question 38

You are a supervisor at the nearby plant.You have been trying to explain to your employees some of the benefits of group decisions.You want the group to try ______________ to generate more ideas and alternatives for the issue at hand.

A)the nominal group technique
B)brainstorming
C)intuition
D)groupthink
E)creativity

Question 39

Steve submitted a proposal to his boss for a new piece of equipment that his department needed.He felt sure that his proposal would be approved even though it was a difficult year financially for his company,and he predicted that it would be approved.Unfortunately,to his surprise,his proposal was rejected.Steve has exhibited

A)anchoring bias.
B)confirmation bias.
C)randomness error.
D)overconfidence bias.
E)escalation of commitment.

Question 40

SCENARIO 9-1
Your organization is considering the use of teams for decision making.You have read and studied the topic extensively.Now you are trying to inform your manager about the advantages and disadvantages of group decision-making.


-Referring to SCENARIO 9-1,you should expect to find that an advantage is that

A)group decision-making will be faster.
B)group discussions will be shared equally.
C)there will be increased acceptance of the decision.
D)group decision-making will not be viewed as legitimate.
E)group decision-making will avoid risks.

Question 41

SCENARIO 9-2
You know that the decision on which new product to produce must have widespread acceptance and be of the highest quality.Having reviewed the literature,you decide that this decision needs to be made by a group of your best managers.


-Referring to SCENARIO 9-2,you have decided to use the nominal group technique.This will give you the advantage of

A)groupshift.
B)participants being honest.
C)building cohesiveness.
D)generating many ideas.
E)processing ideas quickly.

Question 42

The ability to use analogies is indicative of a person's

A)expertise.
B)intrinsic task motivation.
C)intuition.
D)intelligence.
E)creative-thinking skills.

Question 43

SCENARIO 9-2
You know that the decision on which new product to produce must have widespread acceptance and be of the highest quality.Having reviewed the literature,you decide that this decision needs to be made by a group of your best managers.


-Referring to SCENARIO 9-2,if you wanted managers to meet face to face and pool their judgments in a systematic but individual manner,which type of group decision-making technique would you use?

A)interacting groups
B)brainstorming
C)nominal groups
D)electronic meetings
E)task groups

Question 44

SCENARIO 9-2
You know that the decision on which new product to produce must have widespread acceptance and be of the highest quality.Having reviewed the literature,you decide that this decision needs to be made by a group of your best managers.


-Referring to SCENARIO 9-2,if you set up an electronic meeting,your team would be able to

A)build group cohesiveness.
B)groupshift.
C)keep social pressures to a minimum.
D)generate a large number of ideas.
E)maintain a high number of interpersonal actions.

Question 45

Creativity will be enhanced if

A)the person given the project is being watched so that others may learn the process.
B)resource allocation is fair and efficient.
C)the person given the project is granted freedom in determining the process required to complete the project.
D)the situation is a win-lose situation.
E)there are limits set on how the work must be done,thus enabling the person doing the project to find more creative coping skills and more creative ways of doing the work.

Question 46

The whistle-blower who reports unethical or illegal organizational operating practices to the media on the grounds of free speech is exercising which of the following ethical decision criteria?

A)utilitarianism
B)justice criterion
C)rights criterion
D)labour code of ethical conduct
E)situational ethics

Question 47

SCENARIO 9-2
You know that the decision on which new product to produce must have widespread acceptance and be of the highest quality.Having reviewed the literature,you decide that this decision needs to be made by a group of your best managers.


-Referring to SCENARIO 9-2,your managers are located in Taiwan,India,Brazil,and the United States.Which group decision-making technique might be the easiest to arrange?

A)the interacting group
B)brainstorming
C)the nominal group technique
D)an electronic meeting
E)the general meeting

Question 48

Within which of the following steps of the rational decision-making model would creativity probably be the most important?

A)identifying and developing alternatives
B)the best alternative selection
C)allocating weights to criteria
D)evaluating the alternatives
E)using the alternatives to develop task structures

Question 49

If a senior manager states that he makes decisions on the basis of the ________,then he is basing his decisions on the principle of utilitarianism.

A)greatest good for democracy
B)greatest good for the greatest number
C)greatest good for the decision makers
D)greatest good for the least privileges
E)greatest good for the best performers

Question 50

Which of the following group decision-making techniques minimizes social pressures and conflicts?

A)the interactive group
B)brainstorming
C)the nominal group technique
D)the electronic meeting
E)the Delphi technique

Question 51

We know from OB research that organizational constraints have an impact on the way employees make creative decisions.Therefore,organizations,which desire their employees to think and act creatively,would be wise to create an environment that fosters creativity.Which of the following is a recommendation to improve the work environment in order to facilitate creativity?

A)Adjust the reward system to recognize creativity.
B)Develop policies and procedures to direct employees on how to be creative.
C)Provide employees with the resources to be creative.
D)Recruit and select creative people for positions in the first place.
E)Tell employees they are creative in order to establish a sense of self-efficacy.

Question 52

According to the three-component model of creativity,individual creativity requires creative-thinking skills,intrinsic task motivation,and

A)intuition.
B)expertise.
C)self-confidence.
D)risk aversion.
E)tolerance for ambiguity.

Question 53

Which of the following attributes is associated with creative potential?

A)dependence
B)intolerance of ambiguity
C)high need for structure
D)self-confidence
E)risk aversion

Question 54

________ will increase the level of creativity employees are able to achieve.

A)Time restrictions
B)Group homogeneity
C)Win-lose situations
D)Job challenges
E)Restricted resources

Question 55

Interacting groups are an effective in

A)building group cohesiveness.
B)restricting independent thinking.
C)generating many ideas.
D)coming to an agreement on a solution.
E)processing ideas quickly.

Question 56

When evaluating group effectiveness,it is important to consider group success criteria._________ stimulate ideas but,with many people talking at once,block the thought process and eventually impede the sharing of ideas.

A)Interacting groups.
B)Brainstorming groups.
C)Nominal groups.
D)Electronic groups.
E)Taskforce groups.

Question 57

People with an ________ locus of control are more likely to take ________ responsibility for the consequences of their ethical decisions.

A)external;less
B)external;more
C)internal;less
D)internal;no
E)external;extreme

Question 58

________ determines the extent to which individuals fully engage their expertise and creative-thinking skills.

A)Intelligence
B)Intuition
C)Intrinsic task motivation
D)Creative potential
E)Self-confidence

Question 59

SCENARIO 9-2
You know that the decision on which new product to produce must have widespread acceptance and be of the highest quality.Having reviewed the literature,you decide that this decision needs to be made by a group of your best managers.


-Referring to SCENARIO 9-2,if generating lots of ideas efficiently is important,you do NOT want to use _________________ groups.

A)interacting
B)brainstorming
C)nominal
D)electronic
E)optimizing

Question 60

Which group decision-making technique results in the greatest number of ideas and the most original ideas?

A)the interacting group
B)the nominal group
C)brainstorming
D)the electronic meeting
E)the Delphi technique

Question 61

The rational decision-making model assumes that the decision maker can list all possible alternatives.

Question 62

Rockwell Ltd.is sensitive to the employment needs of the Aboriginal community where the business is located.The company makes business decisions with the local people in mind.This is an example of

A)a strategic decision.
B)problem clarification.
C)a rational decision.
D)corporate social responsibility.
E)maximum payoff.

Question 63

Making decisions based on rational thought can be learned.

Question 64

An organization that focuses on a high level of ethical behaviour would promote

A)exemplary behaviour by senior management.
B)employee supervision.
C)decisions that improve task motivation.
D)an organizational culture that supports profit at any cost.
E)the creative expression of its employees.

Question 65

If you decide to explain to a group of employees about ethical and unethical behaviour in decision making,then you will include

A)intuitive decision making.
B)escalation of commitment.
C)stages of moral development.
D)the paradigm shift.
E)management principles.

Question 66

Encouraging employees to volunteer time and skills to charitable organizations is an example of

A)a stage of moral development.
B)corporate social responsibility.
C)an ethical code of conduct.
D)whistle-blowing.
E)ethical actions based on justice.

Question 67

Individuals who have progressed to higher levels of moral development will place increased value on the rights of others.These individuals are

A)strongly influenced by their peers to conform.
B)likely to follow an organization's rules and procedures.
C)likely to value the majority opinion.
D)likely to challenge organizational practices that they feel or believe are wrong.
E)predisposed to use their influence to disregard the organization's value system.

Question 68

A company that operates in a way that focuses on the well-being of its employees is reflective of which of the following ethical decision criteria?

A)utilitarianism
B)justice criterion
C)rights criterion
D)criterion of care
E)social responsibility

Question 69

If you decide to teach a group of employees about the importance of making decisions consistent with fundamental liberties and privileges,then you are planning to focus on which ethical decision criterion?

A)utilitarianism
B)justice criterion
C)rights criterion
D)social privilege
E)group conformity

Question 70

The concept of satisficing is consistent with finding the best option.

Question 71

Rationality assumes that decision makers are guided by logic alone.

Question 72

The tendency to believe that we could have accurately predicted an outcome for something that has already happened is called risk aversion.

Question 73

Organizations trying to better society through such things as charitable contributions or providing better wages to employees working in offshore factories are exhibiting

A)problem clarification.
B)cultural sensitivity.
C)utilitarianism.
D)escalation of commitment.
E)corporate social responsibility.

Question 74

Unions often favour paying people the same wage for a given job,regardless of performance differences,and use seniority as the primary determinant in making layoff decisions.Thus,they would typically favour which of the following ethical decision criteria?

A)utilitarianism
B)rights criterion
C)whistle-blowing
D)justice criterion
E)social responsibility

Question 75

Continuing to proceed with a course of action that you now think is likely to fail is called the anchoring bias.

Question 76

Characteristics of an organizational environment that are likely to foster high levels of ethical decision-making include

A)clear job descriptions.
B)a written code of ethics.
C)better orientation of new employees.
D)a focus on the customer.
E)attention to detail.

Question 77

The business that Kim works for has decided to relocate.Kim has been given the task of deciding the new location for the business.After searching for a few months,Kim has found what she thinks is a prime location and the one to which the business should relocate.In her decision process,Kim thinks that looking for information that would contradict her choice is not a good idea.Kim is right,as searching for contradictory information only creates chaos and confusion over the results.

Question 78

The tendency for people to base their judgments on information that is readily available to them rather than on complete data is known as confirmation bias.

Question 79

Bounded rationality assumes that it is difficult for us to identify and consider every possible alternative available.

Question 80

Intuitive decision-making is a conscious process created out of experience.